Exhibit 10.4
Confidential treatment has been
requested for portions of this exhibit. The copy filed herewith
omits the information subject to the confidentiality request.
Omissions are designated as [*]. A complete version of this exhibit
has been filed separately with the Securities and Exchange
Commission.
MASTER MARKETING AND DEVELOPMENT
AGREEMENT
This Master Marketing and
Development Agreement is entered into and made effective as of this
7th day of July, 2009 (the “ Effective Date ”),
by and between TiVo Inc., a Delaware corporation having its
principal place of business at 2160 Gold Street, Alviso,
California, USA 95002 (“ TiVo ”), and Best Buy
Stores, L.P., a Virginia limited partnership having its principal
place of business at 7601 Penn Avenue South, Richfield, MN, USA
55423 (“ BBY ”).
R ECITALS
WHEREAS, TiVo is a leading provider
of technology and services for digital video recorders (“
DVRs ”) and has developed certain technology that
enables consumers to search, browse, and record television programs
to a digital storage medium and control a television display,
including, without limitation, pausing, fast forwarding and
rewinding live and recorded television;
WHEREAS, BBY is a leading retailer
of consumer electronic devices, including TiVo DVRs, and media
content;
WHEREAS, the parties desire to
develop jointly their respective video service offerings by
advancing distribution of TiVo-enabled devices into consumer homes
and by enabling access to and jointly marketing content and other
services through such devices, in which the parties shall each
economically participate;
WHEREAS, the parties desire to
undertake and commercialize the product integration efforts and
marketing initiatives further described in this
Agreement;
NOW, THEREFORE, in consideration of
the mutual covenants and agreements set forth herein, and for other
good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, and intending to be legally bound
hereby, BBY and TiVo agree as follows:
A GREEMENT
1. DEFINITIONS.
The following capitalized terms in
this Agreement shall have the following meanings.
1.1 “ Affiliate ”
shall mean any Person that, directly or indirectly, through one or
more intermediaries, (a) owns or controls a Party, (b) is
owned or controlled by a Party or (c) is under common control
or ownership with a Party.
1.2 “ Agency ”
shall mean any regulatory authority, body, council or agency having
jurisdiction over either Party or the performance of the Services
hereunder.
1.3 “ Agreement ”
shall mean this Master Marketing and Development Agreement between
BBY and TiVo, and all exhibits, schedules and attachments hereto,
as the same may be amended or supplemented from time to
time.
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1.4 “ Applicable Law
” shall mean all applicable federal, state, local and foreign
laws, government rules and regulations and Agency supervisory
issuances and court orders as are in effect and as are applicable
to the performance of obligations or exercise of duties pursuant to
this Agreement.
1.5 “ BBY Competitor
” means those entities listed on Schedule 1.5 , which
schedule may be amended by mutual agreement of both
parties.
1.6 “ [*] ” means
any and all information collected directly by [*].
1.7 “ BBY Mark ”
shall have the meaning set forth in Section 10.4.
1.8 “ BBY Marketing
Commitment ” shall mean the [*] value (as described in
Section 5.1) of the marketing and promotional activities that
shall be undertaken by BBY in support of sales of TiVo-enabled DVRs
(excluding any MSO/DBS Devices) through the BBY Retail
Channel.
1.9 “ BBY Retail
Channel ” means the physical stores and e-commerce
website in each case owned and operated by BBY for the distribution
of consumer electronic devices and media content. For the avoidance
of doubt, the BBY Retail Channel shall not include any Existing
Platforms or other TiVo-enabled DVRs sold through the BBY Retail
Channel prior to the earlier of the Media Application Launch Date
[*] or any MSO/DBS Device regardless of whether or when distributed
in a store or e-commerce site that is part of the BBY Retail
Channel.
1.10 “ [*] ”
shall mean any content provider or other service that is owned,
controlled or operated by BBY that achieves and maintains
interoperability with the TiVo Service, including the [*] or any
other service that is integrated with the TiVo service
[*].
1.11 “ BBY Technology
” shall mean all Technology and related elements in oral,
demonstrative, written, graphic or machine-readable form, either
owned by BBY as of the Effective Date or developed thereafter by
BBY or by third parties for BBY. BBY Technology does not include
any element, segment or component of TiVo Technology.
1.12 “ [*]
”[*].
1.13 “ Claim Notice
” shall have the meaning set forth in
Section 12.3(a).
1.14 “ Confidential
Information ” shall mean any and all information, whether
written or oral and in any medium, relating to or disclosed in this
Agreement, or by a Party or its Affiliates in the course of
performing under or exercising its rights under this Agreement,
including information disclosed by either Party or its Affiliates
to the other prior to the execution of this Agreement, which is or
should be reasonably understood to be confidential or proprietary
to the disclosing Party, including, without limitation:
(a) all information related to sales of products, such as raw
data, reports, and compilations of such data or information
(including, but not limited to, information provided pursuant to
the terms of this Agreement), (b) information relating to the
services performed
[*]Certain information on this page has been
omitted and filed separately with the Securities and Exchange
Commission. Confidential treatment has been requested with respect
to the omitted portions.
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CONFIDENTIAL
under this Agreement, including the financial
terms, (c) work papers, analyses, compilations, projections,
and statistical data, (d) product cost or sale information or
data, (e) identities of any current or pending or future
vendors or planned products and services to be offered or
withdrawn, including any terms of either party’s contracts
with third parties, (f) planned and future promotions and
grand opening dates, (g) business plans and forecasts,
(h) [*], (i) [*], and (j) any other document which
is specifically marked or communicated by the disclosing party as
“confidential” or “proprietary” or some
similar designation. Further, except as may otherwise be agreed by
the Parties in accordance with the provisions of
Section 15.10, the terms and conditions of this Agreement (as
well as all information regarding the negotiation of this
Agreement) and the relationship between the Parties under this
Agreement shall be deemed to be Confidential Information of each of
the Parties. Notwithstanding the foregoing, Confidential
Information shall not include information that (a) is or
becomes generally available to the public through no fault of the
receiving Party (or any person acting on its behalf); (b) was
previously rightfully known to the receiving Party free of any
obligation to keep it confidential; (c) is subsequently
disclosed to the receiving Party by a third party that may
rightfully transfer and disclose such information without
restriction and free of any obligation to keep it confidential; or
(d) is independently developed by the receiving Party or a
third party, to the extent legally permissible, without reference
to the disclosing Party’s Confidential
Information.
1.15 “ Consumer Data
” means the [*], the [*], or both, as context may
dictate.
1.16 “ Control ”
and its derivatives, whether or not capitalized, shall mean, with
respect to any Person, the legal, beneficial or equitable
ownership, directly or indirectly, of greater than fifty percent
(50%) of the capital stock or other equity ownership interest
of such Person ordinarily having voting rights, or the power in
fact to direct or cause the direction of the management of such
Person or to elect the majority of such Person’s board of
directors.
1.17 “ Deliverable
” shall mean the express deliverables that are identified in
a given Statement of Work and that are provided by one Party to the
other Party pursuant to such Statement of Work.
1.18 “ Documentation
” shall mean the written instruction manuals, on-line help
files, and other technical information and material, in written or
electronic form, regarding the use of any TiVo Deliverables or TiVo
Service that TiVo makes available to BBY.
1.19 “ Existing
Platforms ” shall mean the TiVo DVR platforms that are,
as of the Effective Date, either in use by TiVo Users or currently
being sold to consumers in retail outlets, including the DVRs
referred to internally by TiVo as “Series2”,
“Series3”, “TiVo HD”, and “TiVo HD
XL”. Existing Platforms exclude TiVo DVRs that are MSO/DBS
Devices.
1.20 “ Existing Platform
Interface ” shall mean the TiVo interface utilized on the
Existing Platform.
[*]Certain information on this page has been
omitted and filed separately with the Securities and Exchange
Commission. Confidential treatment has been requested with respect
to the omitted portions.
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1.21 “ Fiscal Year
” shall mean each BBY fiscal year ending February 28 (or
29) of the identified year (e.g. Fiscal Year 2011 refers to
BBY’s fiscal year ending February 28, 2011).
1.22 “ Force Majeure
Event ” shall have the meaning set forth in
Section 15.1(a).
1.23 “ Improvement
” means, with respect to an item of Technology, any
modification, improvement, extension, addition, development or
derivative work of such item developed by either Party.
1.24 “ Indemnified
Party ” shall have the meaning set forth in
Section 12.3(a).
1.25 “ Indemnifying
Party ” shall have the meaning set forth in
Section 12.3(a).
1.26 “ Indemnity Claim
” shall have the meaning set forth in
Section 12.3(a).
1.27 “ Intellectual
Property Rights ” shall mean, to the extent that any of
the following are recognized in any country or jurisdiction in the
world: intellectual property and proprietary rights, whether
registered or unregistered, including, without limitation,
copyrights; patent rights (including, without limitation,
applications for patent protection); publicity rights; trade secret
rights; registered or otherwise protected trademarks, trade names
and service marks; and protections from trademark
dilution.
1.28 “ Launch Date
” shall mean the date on which the applicable development
work described in a given Statement of Work shall be made first
commercially available.
1.29 “ Licensed Titles
” shall mean electronic audio [*] titles which are packaged
and merchandised for access or purchase by customers through the
[*].
1.30 “ Look and Feel
” shall mean the overall appearance and presentation of a
Person’s website, application or digital service, including,
without limitation, graphics, artwork, color schemes, layout,
navigation, mouseovers, organization and code developed
specifically for such website, application or digital
service.
1.31 “ Losses ”
shall mean any and all losses, demands, liabilities, costs, or
expenses, including without limitation reasonable attorneys’
fees, arising out of any claim by a third party.
1.32 “ Media
Application ” shall mean the software owned by TiVo and
its licensors, [*]. The Media Application will aggregate content
offerings from all sources (including off-air, cable, satellite,
and a variety of broadband TV destinations, as applicable to the
device) into a universal search and browse experience. It is
understood that upon execution of a Statement of Work relating to
the [*] and the commercial launch thereof, the Parties intend to
undertake the same development projects and commitments with
respect to the [*] as they undertake with respect to the Media
Application [*].
[*]Certain information on this page has been
omitted and filed separately with the Securities and Exchange
Commission. Confidential treatment has been requested with respect
to the omitted portions.
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CONFIDENTIAL
1.33 “ Media Application
Launch Date” shall mean the date that the Media
Application is first made commercially available on TiVo devices
for sale through the BBY Retail Channel.
1.34 “ MSO/DBS Devices
” shall mean equipment that directly facilitates MSO/DBS
connectivity and is owned and/or controlled by cable, satellite, or
other multichannel video programming distributors, including the
cobranded TiVo/DirecTV box and other similar co-branded,
prepackaged boxes, whose interfaces incorporate the TiVo Service,
even if the DVRs that are distributed in connection with such
platforms are offered for sale and/or distributed through the BBY
Retail Channels and/or Other Retail Channels. For the avoidance of
doubt, standalone TiVo boxes that incorporate a cable card (e.g.,
fitted by a BBY employee) and that subscribe to the TiVo Service
directly through TiVo are NOT considered MSO/DBS Devices. TiVo
interfaces embodied on MSO/DBS Devices are excluded from
TiVo’s obligations hereunder.
1.35 “ [*] ”
shall mean the [*].
1.36 “ [*]
Initiative ” shall mean the development work that the
Parties may undertake to integrate the [*] with the TiVo Service,
as described in Section 4.2.
1.37 “ [*] ”
shall mean the gross amount collected by [*] from any third party
in connection with the [*] that is distributed to the [*] less
(i) [*]; (ii) [*]; and (iii) [*].
1.38 “ Net Revenue
” shall mean the gross amount collected by [*] from any third
party in connection with the [*] on the [*] less (i) [*];
(ii) [*]; and (iii) [*].
1.39 “ [*] ”
shall mean the version of the Media Application that may be
developed by the Parties pursuant to a Statement of Work to be
mutually agreed, which will [*].
1.40 “ [*] ”
shall mean any and all physical retail stores and/or e-commerce
websites [*].
1.41 “ Party ” or
“ Parties ” shall mean individually or
collectively, as the case may be, BBY and TiVo and any and all
permitted successors and assigns.
1.42 “ Person ”
shall mean any individual, firm, corporation, business trust,
partnership or other entity and shall include any successor (by
merger or otherwise) of such entity.
1.43 “ Specifications
” shall mean the technical specifications for each
Deliverable, as specified in the applicable Statement of Work for
such Deliverable.
1.44 “ Statement of
Work ” shall mean a document that describes the
development services that each Party agrees to perform pursuant to
the terms of this Agreement and which shall contain, as applicable
and as agreed by the Parties, the scope of activities, personnel
and other resources to be provided by each Party, technical and
functional requirements (including all Specifications), development
tasks, time for start and completion, interim milestones,
acceptance criteria, scheduled Launch Date, allocation of funding
responsibility, responsibilities of each Party with respect to
the
[*]Certain information on this page has been
omitted and filed separately with the Securities and Exchange
Commission. Confidential treatment has been requested with respect
to the omitted portions.
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CONFIDENTIAL
Consumer Data of the other Party in connection
with the applicable products or services that are the subject of
the development work, allocation of ownership of any developed
intellectual property, revenue shares, if any, payable by one Party
to the other Party in connection with distribution of the
applicable products or services that are the subject of the
development work, applicable representations, warranties, and
indemnities, any amendments to the terms and conditions of this
Agreement that are required to implement such development services,
and any other relevant terms related to the subject matter of such
Statement of Work. Each Statement of Work shall be agreed upon and
executed by the Parties and consecutively numbered and annexed as a
part of Exhibit A, for example, Exhibit A-1, Exhibit A-2, Exhibit
A-3, etc. The Specifications for any Deliverables to be provided
pursuant to such Statement of Work shall be attached to such
Statement of Work and incorporated by reference therein.
1.45 “ Subscriber
” shall have the meaning set out in the Vendor Agreement,
[*].
1.46 “ Tax ”
shall mean any and all forms of taxation and statutory,
governmental, state, provincial, local or municipal impositions,
duties, imposts, contributions, rates and levies, anywhere in the
world whenever imposed, and all penalties, fines, charges, costs
and interest relating thereto.
1.47 “ Tax Authority
” shall mean any statutory, federal, state, governmental or
municipal authority or body (anywhere in the world) involved in the
collection or administration of any Tax.
1.48 “ Technology
” shall mean code, screens, specifications, designs, works,
plans, drawings, data, prototypes, discoveries, algorithms,
inventions, formulae, research, developments, methods, processes,
procedures, improvements, “know-how”, compilations,
Look and Feel, technical information and materials, in oral,
demonstrative, written, graphic or machine-readable
form.
1.49 “ Term ”
shall have the meaning set forth in Section 11.1.
1.50 “ Third Party
Claim ” shall have the meaning set forth in
Section 12.3(a).
1.51 “ TiVo Elements
” shall mean any and all modules, templates, interfaces,
components, utilities, subsets, objects, program listings, tools,
models, programs, systems, analysis frameworks and leading
practices owned or developed by TiVo or its
subcontractors.
1.52 “ TiVo Competitor
” means those entities listed on Schedule 1.17 , which
schedule may be amended by mutual agreement of both
parties.
1.53 “ [*] ”
means any and all information collected directly by [*].
1.54 “ TiVo Mark
” shall have the meaning set forth in
Section 10.5.
1.55 “ TiVo-Owned
” shall have the meaning set forth in TiVo’s Form 10-K
and 10-Q filings with the Securities and Exchange
Commission.
[*]Certain information on this page has been
omitted and filed separately with the Securities and Exchange
Commission. Confidential treatment has been requested with respect
to the omitted portions.
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1.56 “ TiVo Service
” means the digital video recording solution offered by TiVo
that allows a Subscriber to store and manage content obtained
through a TiVo-enabled digital video recorder.
1.57 “ TiVo Technology
” shall mean all Technology and TiVo Elements in oral,
demonstrative, written, graphic or machine-readable form, and
either owned by TiVo as of the Effective Date or developed
thereafter by TiVo or its subcontractors or by third parties for
TiVo or its subcontractors. TiVo Technology does not include any
element, segment or component of BBY Technology.
1.58 “ TiVo User
” shall mean any end user authorized by TiVo to use any TiVo
Service.
1.59 “ TiVo User
Agreement ” shall have the meaning set forth in
Section 8.1.
1.60 “ Vendor Agreement
” shall mean the Vendor Agreement, [*] .
2. DEVELOPMENT
PARAMETERS . The parties
may engage in certain development work, as outlined and further
described in Sections 3 and 4. Prior to engaging in any development
work, the Parties will meet to scope the opportunity and will
negotiate in good faith a separate Statement of Work. Each Party
shall perform the tasks as mutually agreed and described in each
Statement of Work. Funding of development costs for each project
will be as contained in each agreed upon Statement of Work. Each
Party shall otherwise bear its own costs of performing the tasks it
undertakes to perform pursuant to any Statement of Work unless
otherwise specified in such Statement of Work. The Parties agree
that all development work will be funded and performed [*]. For the
avoidance of doubt, the Parties acknowledge and agree that
[*].
3. IMMEDIATE DEVELOPMENT AND/OR
COORDINATION BETWEEN THE PARTIES
3.1 BBY Showcase
(a) General
. After the Media Application Launch
Date [*], whichever is earlier, during the Term and subject to each
parties written acceptance of a Statement of Work addressing the
terms under which TiVo will provide BBY a showcase (“
Showcase Terms ”), TiVo shall make available to BBY
[*] (the “ BBY Showcase ”). Subject in each case
to TiVo’s technical requirements and limitations as more
fully set forth in the Showcase Terms, the BBY Showcase shall
include the following features: (i) [*]; and (iii) [*].
The BBY Showcase shall [*] on such Existing Platforms and such
future TiVo DVR platforms that incorporate the Media Application
and the BBY Showcase [*].
(b) Statement of Work
Date . The Parties intend
to agree to a Statement of Work (which will include a scheduled
Launch Date) for the development of the BBY Showcase, and
will
[*]Certain information on this page has been
omitted and filed separately with the Securities and Exchange
Commission. Confidential treatment has been requested with respect
to the omitted portions.
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use commercially reasonable efforts to execute
such Statement of Work [*] from the Effective Date of this
Agreement.
(c) Future Development
. Subject to the Parties’
advance written agreement on a Statement of Work addressing such
development, the Parties may develop the functionality for BBY
Showcases to enable TiVo Users [*].
3.2 [*] . Immediately after
the Effective Date, TiVo and BBY will work together to develop a
conceptual plan [*]. TiVo will provide [*]. The conceptual designs
will [*].
3.3 [*] . The parties
acknowledge the potential value of [*]. As such, after the Media
Application Launch Date [*], whichever is earlier and during the
Term, TiVo will [*].
4. POTENTIAL FUTURE DEVELOPMENT
OPPORTUNITIES
4.1 General. The Parties
anticipate that they may undertake one or more of the development
opportunities described in this Section 4, provided that
[*].
4.2 [*] . The Parties may
enter into a Statement of Work pursuant to which TiVo shall perform
development work to cause the [*] to [*]. Such Statement of Work
would identify development that would enable the [*] to [*] after
the applicable Launch Date.
4.3 [*] . The Parties may
enter into a Statement of Work pursuant to which TiVo shall perform
development work to cause the [*] to [*]. Such Statement of Work
would identify development that would enable the [*] to
[*].
4.4 [*] . After the Media
Application Launch Date [*], whichever is earlier and during the
Term, the Parties may enter into one or more Statements of Work
pursuant to which TiVo shall perform development work to cause [*],
subject to approval by TiVo [*] and subject to the engineering
development conditions set forth in Section 4.14.
(a) Future Opportunities. At BBY’s
request and after execution of the applicable Statement of Work,
TiVo and BBY would work together to investigate additional
mechanisms to streamline access to the applicable [*]. Potential
mechanism, but not binding unless otherwise agreed in writing by
both Parties, include:
(i) [*];
(ii) [*]; and
(iii) [*].
[*]Certain information on this page has been
omitted and filed separately with the Securities and Exchange
Commission. Confidential treatment has been requested with respect
to the omitted portions.
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4.5 [*] . The Parties may
enter into a Statement of Work pursuant to which TiVo shall perform
development work to [*] to enable [*] from TiVo DVRs that
incorporate the Media Application [*] after the applicable Launch
Date (the “[*]”). For purposes of clarity, the Existing
Platforms would not support the [*]. [*] would be made available on
all TiVo DVRs that are technologically capable of integrating and
executing the Media Application, and [*] after the applicable
Launch Date.
(a) [*] . It is understood by the Parties
that [*] would enable [*] in the Media Application shall be [*] in
a manner consistent with Schedule 4.6(a) (the “[*]”).
[*] in the Media Application shall be [*] in Schedule 4.6(b) (the
“[*]”). Determination of which [*] are [*] would be [*]
as follows:
(i) [*];
(ii) [*];
(iii) [*]; and
(iv) [*].
(b) Content Provider Position in BBY Retail
Channel . After the commercial release of the [*] and during
the Term, subject in each case to [*], [*] will have the [*] within
the Media Application and Existing Platforms [*]. [*].
[*].
4.6 [*] . [*] completed
through the [*] via the Media Application and the Existing Platform
Interface will be specifically negotiated and included in the
applicable Statement of Work.
4.7 Development of [*] .
Subject to the advance written agreement on a Statement of Work,
the Parties shall work together to develop the [*]. The Parties
will use commercially reasonable efforts to scope and negotiate the
related Statement of Work within [*] after the Effective Date, and
to develop [*]. BBY will also [*]. For the avoidance of doubt, it
would be BBY’s intent to [*]. For purposes of clarity, the
Parties understand and agree that the [*].
4.8 [*] . After the Media
Application Launch Date [*], whichever is earlier and during the
during the Term and subject to each parties written acceptance of a
Statement of Work addressing the terms under which TiVo would
distribute any [*] (defined herein) through the [*] on the TiVo
Service, if BBY develops [*] (each, a “[*]”), TiVo
shall make available [*] on all Existing Platforms and future TiVo
DVR platforms that incorporate the [*] of the TiVo Service. As part
of such [*], the [*] shall be available for access by TiVo
subscribers to enable the [*].
4.9 [*] . If BBY develops an
[*] that will enable the [*] (“[*]”), the Parties may
negotiate a Statement of Work pursuant to which the [*] and would
be [*] on the Media Application and Existing Platforms distributed
through the [*], subject only to technical limitations and device
compatibility.
[*]Certain information on this page has been
omitted and filed separately with the Securities and Exchange
Commission. Confidential treatment has been requested with respect
to the omitted portions.
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Further, the Parties may enter into a Statement
of Work pursuant to which the Parties would integrate the [*] such
[*] Media Application and Existing Platforms with [*].
Additionally, BBY and TiVo may develop services that [*]. [*] the
Media Application and Existing Platform Interfaces will be
specified in the applicable Statement of Work.
4.10 [*] . If BBY develops a
[*] (“[*]”), the Parties may negotiate a Statement of
Work pursuant to which the Parties would integrate the [*]. The [*]
(“[*]”) [*]. [*] the Media Application and Existing
Platform Interface will be specified in the applicable Statement of
Work.
4.11 [*] . During the Term,
at BBY’s request, the Parties shall use commercially
reasonable efforts [*] would comprise “Other
Development” as described in Section 4.14
below.
4.12 Certain Strategic
Opportunities . BBY and TiVo shall use commercially reasonable
efforts to pursue on a joint basis, the following strategic
initiatives (including, with regard to (a) and (b), as may be
otherwise described herein in further detail): (a) [*],
(b) [*], (c) [*], and (d) [*].
4.13 [*] . From time to time,
but at least on a regular [*] basis, the Parties will undertake [*]
between the Parties’ designated representatives in which the
Parties shall discuss [*] for (a) [*], if applicable,
(b) [*], and (c) as applicable and reasonably available
to each Party, [*].
4.14 Other Development . In
addition to the specific development initiatives outlined above and
after the Media Application Launch Date [*], whichever is earlier
and during the Term, [*] (a) [*], (b) [*], and
(c) [*], all as further defined in the applicable Statement of
Work to be mutually agreed by the Parties.
4.15 Technical Support;
Updates . Throughout the Term, [*] related to the TiVo Service
and will provide [*].
5. BBY MARKETING AND
MERCHANDISING COMMITMENT
5.1 BBY Marketing
Commitment
(a) General. Commencing on the Media
Application Launch Date [*], whichever is earlier, and during the
remainder of the Term, BBY shall enhance the BBY in-store
merchandising presence for TiVo-enabled devices (excluding any
MSO/DBS Devices) and develop and execute marketing and promotional
activities to maximize sales of TiVo-enabled devices (excluding any
MSO/DBS Devices) for the distribution of TiVo Service, as provided
herein. BBY shall ensure that the BBY Marketing Commitment shall be
[*]. Starting on the first Additional Marketing Commitment Launch
Date, the value of the [*] BBY Marketing Commitment shall [*].
Starting on the next Additional Marketing Commitment Launch Date,
the value of the [*] BBY Marketing Commitment shall [*]. For
purposes of clarification, the BBY Marketing Commitment shall be
determined relative to [*]. BBY acknowledges and agrees that at all
times during the Term it shall
[*]Certain information on this page has been
omitted and filed separately with the Securities and Exchange
Commission. Confidential treatment has been requested with respect
to the omitted portions.
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ensure that [*] the total BBY Marketing
Commitment shall be [*]. The value of all such marketing activities
shall be [*]. The Parties agree to [*].
(b) Specific Marketing Resources. The
marketing and promotional activities to be undertaken by BBY shall
[*]: (i) [*]; (ii) [*]; (iii) [*]; (iv) [*];
and (v) [*]. The implementation, nature, timing and other
considerations related to any other marketing or promotional
activities to be undertaken by BBY would be [*] and may include [*]
the following: (v) [*]; (vi) [*]; (vii) [*] and
(viii) [*].
(c) [*] . [*], notwithstanding anything to the contrary
in this Agreement, BBY does [*].
5.2 [*] . In connection with
this Agreement, BBY and TiVo will seek to generate, at a minimum,
the following levels of [*]: (a) the [*], (b) the [*],
and (c) the [*]:
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6. FEES AND
PAYMENTS
6.1 [*] . Notwithstanding any
other amounts in the Vendor Agreement to the contrary,
[*]:
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(a) During the Term of this Agreement, [*].
Subscribers acquired prior to or after this Agreement shall be
governed by the terms of the Vendor Agreement. The same
restrictions shall apply to what constitutes a
“Subscriber” under this Agreement as under the Vendor
Agreement. [*].
6.2 [*] . After the Media
Application Launch Date [*], whichever is earlier, and during the
Term, [*]. Notwithstanding the foregoing, [*].
6.3 [*] . From and after the
date on which the total number of Existing Platforms and [*]after
the Effective Date [*], BBY shall [*].
[*]Certain information on this page has been
omitted and filed separately with the Securities and Exchange
Commission. Confidential treatment has been requested with respect
to the omitted portions.
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CONFIDENTIAL
6.4 Payment Terms. Unless
otherwise agreed in writing between the Parties, all payments by
BBY to TiVo, by TiVo to BBY, and other transfers of funds between
the Parties required shall be made by bank transfer, and all
charges and fees relating to such transfers (including, without
limitation, those levied by the paying and payee bank or other
financial institution) will be borne by the Party receiving the
payment and shall be made in accordance with the payment terms and
obligations contained in Exhibit C.
6.5 Taxes. Each Party shall
be liable for Taxes based on its own net income, items of tax
preference, profit, network, capital stock, franchise, property or
conduct of business, or similarly based Taxes.
7. PRODUCT PURCHASES;
FORECASTS
7.1 Purchase Terms. The
Parties acknowledge and agree that the distribution by TiVo to BBY
of all TiVo DVRs for distribution through the BBY Retail Channel
prior to and after the Effective Date shall be governed by the
terms of the existing Vendor Agreement between TiVo and BBY
Purchasing LLC dated March 3, 2002, as amended (“
Vendor Agreement ”), except to the extent any specific
term in the Vendor Agreement is specifically amended and superseded
by a term in this Agreement.
7.2 [*] . Notwithstanding
anything to the contrary in the Vendor Agreement, which shall be
amended in relevant part by this Section 6.1, during the Term,
no later than five (5) days after the end of each month, BBY
shall [*].
8. END USER
RELATIONSHIPS
8.1 TiVo User Agreements . As
between the Parties, TiVo shall be solely responsible for entering
into a user agreement with each TiVo User governing subscriptions
to the TiVo Service (the “ TiVo User Agreement
”). TiVo shall establish all terms of the TiVo User Agreement
in its sole discretion and may choose to use different forms of the
TiVo User Agreement in different territories. Notwithstanding the
foregoing, TiVo agrees to inform BBY [*] of any change to the TiVo
User Agreement that would require BBY to make any changes to its
policies or practices.
8.2 Privacy . Each Party
assumes responsibility for compliance with applicable data
protection and privacy laws, and all applicable privacy policies,
with respect to all of its activities and with respect to any
consumer data collected by such Party. The Parties shall take all
steps and do, or omit to do, all things and deliver any documents,
consents, notices or things as are necessary, as any Agency or
court order may require, to ensure that BBY and TiVo comply with
all applicable data protection and privacy regulations.
8.3 Ownership. Each Party
will own its Consumer Data in whatever form or format and, except
as otherwise expressly stated in this Agreement or restricted by
such Party’s privacy policies, may use such Consumer Data in
whatever form or format without restriction, in accordance with
all
[*]Certain information on this page has been
omitted and filed separately with the Securities and Exchange
Commission. Confidential treatment has been requested with respect
to the omitted portions.
12
CONFIDENTIAL
Applicable Laws. For the avoidance of doubt and
for clarification, the same information may be separately collected
by each Party and at the same time be Consumer Data of each Party.
Any Consumer Data provided by one Party to the other Party under
this Agreement will be used by the receiving Party solely to the
extent necessary to permit such Party to perform its obligations
and exercise its rights under this Agreement, or as otherwise
permitted hereunder; provided, however, that, for purposes of
clarity, the foregoing will not apply to the extent that the
receiving Party has obtained or late